Question

A company manufactures and sells personalized stationery. The weekly fixed cost is $3850 and it cost $3.00 to produce each package of stationery. The selling price is $6.50 per package. How many packages of stationery must be produced and sold each week for the company to generate a profit?

The company will generate a profit if;
more than or equal to
more than
less than or equal to
less than
|blank|packages of stationery are produced and sold each week.

(sorry forgot to add that part in last question, hope this one is better)

Answer 1

more than 1100

Explanation:

The contribution margin for each package sold is ...

$6.50 -3.00 = $3.50

The number of packages that must be sold to cover fixed costs is ...

3.50n > 3850

n > 1100 . . . . . . . divide by 3.50

The company will generate a profit if more than 1100 packages are produced and sold each week.

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Additional comment

If exactly 1100 packages are sold, then costs are covered, but profit is 0. In order for profit to be positive, more than 1100 packages must be sold.